Hess Midstream LP

will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded for replay purposes. I would now like to turn the conference over to Jennifer Gordon, Vice President of Investor Relations. Please proceed.

Thank you, Gigi. Good afternoon, everyone, and thank you for participating in our fourth quarter earnings conference call. Our earnings release was issued this morning and appears on our website, www.hessmidstream.com. Today's conference call contains projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in such statements. These risks include those set forth in the risk factor section of HES Midstream's filings with the SEC. Also, on today's conference call, we may discuss certain GAAP financial measures, a reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in the earnings release. With me today are John Gatling, President and Chief Operating Officer, and Jonathan Stein, Chief Financial Officer. I'll now turn the call over to John Gatling.

Thanks, Jennifer. Good afternoon, everyone, and welcome to HEST Midstream's fourth quarter 2024 conference call. Today I'll review our 2024 performance and highlights. provide an overview of our 25 plans and longer-term outlook through 2027, and give an update of Hess Corporation's results and outlook for the Bakken. Jonathan will then review our financial results. 2024 was a year of continued strong performance execution for Hess Midstream. We delivered significant volume growth, including 14% year-over-year growth in gas processing throughputs. Additionally, we made excellent progress on key multi-year projects, to strategically grow our gas gathering system while advancing our planned gas processing expansion. Today, we issued our guidance release extending our MVCs and growth profile through 2027 with gas volumes expected to grow by more than 25% from 2024. Our long-term growth remains driven by HESA's planned development activity and increasing third-party volumes reinforcing the need for additional gas processing capacity. Now turning to HES upstream highlights. In the fourth quarter, Bakken net production averaged 208,000 barrels of olecum per day, including 20,000 barrels of olecum per day from percentage of proceeds contracts, which do not impact HES midstream throughputs. For full year 2024, Bakken net production averaged 204,000 barrels of olecum per day, marking a 12% year-over-year increase. HESS reaffirmed its plan to maintain a four-rig drilling program in 2025 and projected first quarter 2025 net production to be in the range of 195 to 200,000 barrels of olecumbe beret. The decrease from the fourth quarter 2024 is primarily attributed to severe winter weather in January. Now turning to HESS midstream results. In the fourth quarter, we delivered strong operational performance with gas processing volumes averaging 447 million cubic foot per day, crude termling volumes averaging 127,000 barrels of oil per day, and water gathering volumes average 130,000 barrels of water per day. For full year 2024, HESS Midstream's gas processing volumes averaged 420 million cubic foot per day, crude termling volumes averaged 123,000 barrels of oil per day, and water gathering volumes averaged 125,000 barrels of water per day. resulting in a full-year adjusted EBITDA of $1,136,000,000. Now moving to HES Midstream's guidance. For the first quarter of 2025, we anticipate volumes to be lower than the fourth quarter of 2024 due to the impact of severe winter weather in January and the possibility of further weather-related impacts in the first quarter. For full year 2025, we anticipate approximately 10% growth in volumes across our oil and gas systems compared to 2024, primarily driven by HESA's development activity and increasing third-party volumes. We expect gas processing volumes to average between 455 and 465 million cubic foot per day, crude terminaling volumes to average between 130,000 and 140,000 barrels of oil per day, and water gathering volumes to average between 120 and 130,000 barrels of water per day. Driven by volume growth, our adjusted EBITDA for 2025 is projected to increase by 11% at the midpoint compared to 2024, with an expected range of $1,235,000,000 to $1,285,000,000. Building on our 2025 volume growth, we anticipate gas volumes to increase by approximately 10% in 2026 and 5% in 2027, while oil volumes are expected to grow by approximately 5% annually over the same period. This includes planned regulatory inspections and maintenance at the Tioga gas plant in 2027, which is expected to temporarily reduce gas volumes and have a full year impact of approximately 10 million cubic foot per day. Given our growth trajectory, we anticipate exceeding our current gas processing capacity in 2027. To address this, we are beginning construction this year on the previously announced 125 million cubic feet per day CAPA gas plant. Once operational in 2027, the new plant will support throughput growth from HESS and third parties through at least the end of the decade. Now turning to HESS Midstream's 2025 capital program. Total capital expenditures for the year are expected to be approximately $300 million. with $125 million dedicated to ongoing expenditures for gathering system well connects and maintenance, and $175 million allocated to project-based investments, including volume-driven gas gathering and processing expansions. In 2025, we are focused on completing two new compressor stations and their associated gathering systems. Once operational, these stations are expected to add a combined 85 million cubic foot per day of gas compression capacity with the potential to expand up to approximately 140 million cubic foot per day. Additionally, our growth capital will support the construction and fabrication of the 125 million cubic foot per day CAPA gas plant. These projects are expected to provide necessary gas gathering and processing capacity to meet growing demand. We plan to maintain annual capital expenditures in the range of approximately 250 to 300 million dollars through 2027. This includes completing the CAPA gas plant and starting construction on an additional compressor station in 2026. While capital allocation will shift as our growth projects progress, we generally expect spending to decline over time as we finalize gathering expansions and focus on the commissioning of the CAPA gas plant in 2027. In summary, we remain focused on executing our strategy of disciplined, low-cost investments to meet growing base and demand while maintaining reliable operations and strong financial performance. With growth projected through 2027 and beyond, we expect to generate sustainable cash flow and create opportunities to return additional capital to our shareholders. I'll now turn the call over to Jonathan to review our financial results and guidance.